Getting the Highest LTV on Your Commercial Mortgage
75% LTV is the ceiling most lenders will go to on a commercial mortgage in the UK, and it is not automatic. A strong owner-occupied case with a trading business behind it can reach 75% to 80%. A weak investment case with a short lease and an untested tenant can be pushed down to 60% or lower on the same asset class. The property does not decide the LTV on its own. The deal structure, the income behind it, and the borrower profile decide it.
This page sets out when 75% is realistically available, when lenders pull back, and what separates a strong application from a weak one on paper-identical deals.
When 75% LTV Is Achievable
Owner-Occupied Trading Business
A business buying its own premises is the strongest case for 75%, sometimes reaching 80%. Lenders are assessing the trading business as much as the property. Two to three years of clean accounts, growing turnover, and low existing debt all support higher leverage. A profitable business with a strong balance sheet can access rates close to residential mortgage levels at this LTV.
Typical range: 70-80% LTV. Typical rate: 5.0-6.0%. Conditions: minimum two years’ accounts, no material director loans, clear affordability at a stressed rate.
Investment Deals With a Secure Tenant
A tenant on a long lease with a sound covenant is what gets an investment deal to 75%. Lenders are underwriting the income stream, not just the bricks, and a ten-year lease with a financially stable occupier and five years left before the next break gives them enough confidence to lend at the ceiling.
Typical range: 70-75% LTV. Typical rate: 5.5-6.5%. Conditions: income coverage of at least 125-140% once tested against a stressed rate, unexpired lease term of five years or more. For current pricing by LTV band and asset class, see our commercial mortgage rates page.
Standard Property Types
Offices, retail units, light industrial and warehouses in established locations attract the widest lender pool and the highest achievable LTV. These are well-understood assets with active resale and re-letting markets, so lenders are comfortable extending to the ceiling where the income and borrower profile support it.
How a deal is presented to a lender – lease terms, accounts, and coverage evidence – shapes the LTV as much as the property itself.
When 75% LTV Is Not Available
75% is the ceiling, not the starting point. Every case gets assessed on its own risk, and the scenarios below consistently land lower. For a full breakdown of the wider framework, see our page on how commercial mortgage lenders assess risk.
Weak or Short Lease
A lease with under five years remaining, or an occupier whose accounts don’t give a lender much to go on, gets treated more cautiously. Underwriters discount income from short leases before they run the coverage calculation, and once a lease is close to expiry, the amount on offer usually drops regardless of what the property itself is worth.
Typical range: 55-65% LTV.
Worked Example – Same Property, Different Outcomes
A £600,000 office let to a single tenant on a ten-year lease with six years remaining.
Borrower A comes to the lender prepared. Three years of accounts are in order, the lease terms are set out plainly, and the numbers behind the coverage calculation have already been worked through. Outcome: 75% LTV, £450,000 loan, rate around 5.75%.
Borrower B goes to the same type of lender but arrives with gaps. There’s no summary of the lease terms to start with, the accounts have to be chased twice, and the lender ends up doing the coverage maths on their own instead of having it laid out for them. Outcome: 65% LTV, £390,000 loan, rate around 6.5% – the lender has priced in what it doesn’t know and pulled the leverage back to compensate.
Same property, same tenant, same lease. The £60,000 gap in loan size comes down entirely to how the case was put together. Use our commercial mortgage calculator to model your own numbers against different LTV bands before you approach a lender.
How to Position a Deal for Maximum LTV
A well-prepared application – lease details, accounts, and coverage figures set out clearly – is what holds an LTV offer at the ceiling.
Lay out the lease terms clearly. A summary showing unexpired term, break clauses, and tenant strength up front takes away the lender’s biggest source of doubt before they even need to ask about it.
Get accounts in order. Two years minimum for owner-occupied cases, three is stronger. If the most recent year shows a dip, have the reasoning ready before the lender raises it.
Know your coverage ratio before you approach anyone. If the income doesn’t comfortably clear 125-140% at a stressed rate, deal with it before you submit rather than leave the lender to find the gap themselves. For more on how that buffer is calculated, see our page on how lenders stress test commercial property.
Use a whole-of-market broker. Commercial lenders price differently and their appetite for LTV shifts by property type and sector without any public announcement. A broker with active lender relationships knows who is currently stretching to 75% on a given asset class and who is pulling back.
Frequently Asked Questions
Can I get 75% LTV on a commercial mortgage in the UK?
Yes – 75% LTV is available from most mainstream and specialist lenders on owner-occupied and strong investment cases. Owner-occupied deals with a solid trading business can sometimes reach 80%. Whether your deal qualifies depends on the lease, the income, and the borrower profile.
What property types support the highest LTV?
Standard offices, retail units, light industrial and warehouses support the widest lender pool and the highest achievable LTV. Specialist assets such as care homes, hotels and leisure property typically cap lower, around 55-65%.
Does a short lease reduce my available LTV?
Yes – a lease with under five years remaining is treated more cautiously. Lenders apply a haircut to income from short leases before calculating the loan size, which usually pulls the achievable LTV down.
What income coverage ratio do lenders require for maximum LTV?
Most lenders want rent to cover the interest payment by at least 125% to 140% at a stressed rate, not the actual pay rate. Deals that clear this comfortably are in the strongest position to access 75%.
Can a first-time commercial investor get 75% LTV?
Sometimes, but borrower experience carries weight. A first-time investor with a strong lease and clean personal credit can still access competitive LTV, though an experienced investor with a track record of successful exits typically accesses the top of the range more easily.
Does using a broker actually improve the LTV I am offered?
Often, yes. Lender appetite for LTV on a given property type and sector shifts regularly and is not published. A broker with active relationships across the market can identify which lenders are currently willing to stretch to 75% on your specific deal type.
Speak to a Commercial Mortgage Specialist
Commercial Finance Network is a whole-of-market FCA authorised broker working with businesses and property investors across the UK and internationally. We work across the full specialist commercial mortgage panel and will tell you what LTV and rate to expect, and how to structure the application before anything is submitted.
Call us on +44 1494 622 111 or email info@cfnuk.com to speak to a specialist directly.
Commercial Finance Network is authorised and regulated by the Financial Conduct Authority.
Related Pages
- Commercial Mortgage vs Bridging Finance – which structure fits the deal depending on timing and property condition
- Why Commercial Mortgage Deals Fall Apart – where late-stage failures happen and how to avoid them
- When to Refinance a Commercial Property – timing, risks and how to get the decision right
- Bridging Loan 75% LTV – the same question for short-term finance and which lenders will go there
- How Lenders Assess Exit Risk – how commercial and bridging lenders evaluate the credibility of your exit